Talent Wars: Why Businesses Have to Battle to Hire the Best Despite Surging Inflation and Recession Fears...

Talent Wars: Why Businesses Have to Battle to Hire the Best Despite Surging Inflation and Recession Fears, Every Sector—From Tech to Hospitality—is Facing a Fight for the Top Candidates

The war for talent is heating up. Businesses are facing an uphill battle to attract and retain the best employees, as skilled workers become increasingly scarce. The situation is exacerbated by fears of a recession, which are causing many talented workers to reconsider their career choices. As a result, businesses need to be more strategic than ever before when it comes to recruiting and retaining top talent.

Fraser Gough could not believe his luck. Earlier this year the 23-year-old, who works in digital marketing in London, was contacted by a recruiter on the professional networking website LinkedIn to see if he would be interested in a job at Clearpay, a payments company. It was an offer he could not turn down. He got a 40 per cent pay rise to ￡35,000, equity in parent company Square and a series of perks. This included free gym membership, money for bills to help him manage his working from home costs, and opportunities to work in San Francisco. “I don’t even have a degree. I’m self-taught,” says Gough, who joined in March and has been working long hours and going to great lengths to build up his knowledge in the sector. “I’m now trying to go for another raise, and I think I’ll get it.” Despite surging inflation and fears that the UK will be heading into a prolonged recession, unemployment has stayed low and companies have continued to hire, often paying bumper wages. Even as some observers expect businesses to scale back on spending and recruiting in response to a looming slowdown in demand for goods and services, every sector — from technology to hospitality, construction and life sciences — is still experiencing a talent crunch. “It doesn’t feel like anyone is preparing for a recession. The perks are still there and nothing seems to have changed,” says Gough. The UK labour market revival since the height of the pandemic has resulted in unemployment at its lowest levels since 1974. The worker shortage has forced many companies to increase pay, hand out bigger benefits and offer huge flexibility, which is reinforcing inflationary pressures.

The Rise of the Gig Economy

One of the major factors driving the talent wars is the rise of the gig economy. More and more workers are choosing to freelance or contract out their services, rather than commit to full-time employment. This flexibility is appealing to many workers, who value freedom and autonomy over stability and security. As a result, businesses need to be more creative in their approach to attracting and retaining top talent.

One way to do this is by offering more flexible working arrangements. For example, some businesses are offering employees the ability to work from home one or two days per week. Others are offering unlimited vacation days or four-day work weeks. By offering these types of perks, businesses can make themselves more attractive to workers who value freedom and flexibility.

The Importance of Employee Engagement

Another important factor in talent wars is employee engagement. In order to attract and retain top talent, businesses need to create an environment where employees feel valued and appreciated. This can be done in a number of ways, such as offering competitive salaries, providing opportunities for professional development, or simply creating a positive workplace culture.

When employees feel valued and engaged, they are more likely to stay with a company for the long term. Therefore, it is essential for businesses to focus on employee engagement if they want to win the talent wars.?

The war for talent is raging on all fronts—from tech to hospitality, no sector is immune. To win the battle, businesses need to be more strategic than ever before in their approach to recruiting and retaining top talent. By understanding the major trends driving the talent wars, businesses can put themselves in a better position to succeed in this competitive landscape.

Thanks,

Tom

Founder & MD | TalentSpa

If you are struggling to find good people why not take advantage of a FREE TRIAL of TalentSpa

References;

1. FT.com https://www.ft.com/content/e79e1497-1eb3-4ca1-bd1f-b12679e24576)